Skeena Secures Transformative 0 Million Financing Package with Orion Resource Partners

Skeena Resources Limited, a leading Canadian mining company, has announced a comprehensive 0 million financing package with Orion Resource Partners, a prominent global investment firm. This landmark deal will fully fund the development of Skeena's flagship Eskay Creek project, positioning the company for a transformative transition into gold and silver production.

Unlocking the Potential of Eskay Creek: A Transformative Financing Solution

Multifaceted Financing Package

Skeena's financing package with Orion Resource Partners comprises four key components:1. 0 million equity investment priced at a premium to Skeena's five-day volume-weighted average share price.2. 0 million gold stream with an option to buy back up to two-thirds for a 12-month period after commercial production begins.3. 0 million capital committed and available from a senior secured loan with a 1% standby fee and no break fee.4. 0 million cost over-run facility in the form of an additional gold stream subject to the same standby terms as the loan.

Securing Funding for Production

This comprehensive financing package is the result of a competitive and thorough process undertaken by Skeena to find the optimal financing solution for the company. The deal provides Skeena with the certainty of funding required to advance the Eskay Creek project into production, while balancing attractive cost of capital, flexibility, and optionality.

Aligning with a Committed Stakeholder

Skeena's executive chair, Walter Coles, expressed his enthusiasm for the partnership, stating, "The result is certainty of funding to advance Eskay into production while balancing attractive cost of capital, flexibility, and optionality. We welcome Orion alongside existing shareholders as an aligned and committed stakeholder, further validating the merits of the project."

Fully Funded to Production

With Orion's 0 million commitment and Skeena's million cash-on-hand position, the Eskay Creek project is now fully funded to production. This milestone achievement marks a significant step forward in Skeena's journey to unlock the value of this high-grade asset.

Eskay Creek: A Proven High-Grade Asset

Skeena's Eskay Creek project has a proven track record of high-grade gold and silver production. The company recently completed a definitive feasibility study for the project, which demonstrated a high-grade open-pit operation with impressive financial metrics.

Robust Financial Projections

The feasibility study for Eskay Creek revealed an after-tax net present value (5% discount) of C billion and an after-tax internal rate of return of 43%. Using a gold price of ,800/oz. and a silver price of /oz., the project is expected to reach payback in just 1.2 years. The life-of-mine all-in sustaining costs are projected to be 7/oz.

Substantial Mineral Reserves and Resources

The Eskay Creek project boasts substantial mineral reserves and resources. The proven and probable reserves total 39.8 million tonnes grading 2.5 g/t gold and 68.7 g/t silver (3.6 g/t gold equivalent), containing an estimated 33 million oz. of gold and 88.0 million oz. of silver.The measured and indicated resource for the open-pit operation is 50.1 million tonnes grading 2.6 g/t gold and 63 g/t silver (3.4 g/t gold equivalent), containing an estimated in-situ 4.1 million oz. of gold and 101.4 million oz. of silver. The inferred resource is 652,000 tonnes grading 1.5 g/t gold and 32.4 g/t silver.

A Storied Past and Promising Future

Eskay Creek was once the highest-grade gold mine in the world, producing 3.3 million oz. of gold and 160 million oz. of silver at average grades of 45 g/t gold and 2,224 g/t silver from 1994 to 2008. With this transformative financing package, Skeena is poised to revive the legacy of Eskay Creek and unlock its full potential, delivering value for its shareholders and stakeholders.